Indonesia Imposes Export Controls on Natural Resources to Boost Tax Revenue

JAKARTA, May 20 (AFP) - Indonesian President Prabowo Subianto today announced export controls on natural resources to boost state tax revenue amid economic headwinds sparked by the Middle East war. Agence France-Presse reports that Prabowo told parliament all future sales of natural resources, from crude palm oil and coal to ferroalloys, will be conducted through government-designated state-owned enterprises. 'This means that the proceeds from every export sale will be transferred by the designated state-owned enterprise to the business operator responsible for managing those activities,' Prabowo said. The Jakarta Stock Exchange index fell nearly 1.5% before noon following the announcement. In an optimistic report on Indonesia's economic condition, Prabowo noted that the new regulation would optimize state tax revenue. 'The issuance of this regulation is a strategic move to strengthen the export management of our natural resource commodities,' he said. 'The main goal of this policy is to enhance supervision and monitoring, and to eliminate practices such as under-pricing, under-invoicing, transfer pricing, and the capital flight of export proceeds.' (Translator: Chang Hsiao-wen) 1150520